Detached homes provide the best returns over the last decade

Market analysis by peer-to-peer real estate investment platform, easyMoney, reveals that detached homes have delivered the best investment returns of all residential property types in the past decade, with value growth outperforming flats by more than 20%. 

To understand what type of residential property makes for the best investment, easyMoney has analysed the annual value change of all types of home – detached, semi-detached, terraced, and flats – over the past decade to see which has increased the most and therefore delivered the best returns for investors.

Over the past ten years, the average price of detached homes in the UK has increased by 74% (£195,247) to stand at a current price of £459,013. This is the largest value increase of all property types.

Semi-detached homes now cost an average of £280,425 after ten-year price growth of 71.4% (£116,817), while terraced homes now cost £235,529 after increasing in value by 67.6% (£95,024) since 2013.

Meanwhile, UK flats have experienced price growth of 51% (£77,127) in the past decade, and now cost an average of £228,441.

Jason Ferrando, CEO of easyMoney said, “This research demonstrates just how secure property investment is in this country. Despite all of the economic and global turmoil we have endured in the past decade, negative annual price change has only been recorded twice and in both instances it was flats that lost value, and neither time did the loss surpass -0.7%. 

Flats are, in general, an outlier. While all other property types enjoyed massive price boosts during the pandemic, flats recorded only their third-highest growth of the decade.

This is because the pandemic and lockdowns instigated a race for space that flats simply cannot satisfy, and also because of the external cladding issues highlighted by the Grenfell tragedy and which continues to haunt high rise buildings to this day. 

Despite this, however, flats have still delivered positive ten-year investment returns proving that even in the worst circumstances, residential property is one of, if not the most reliable investment asset money can buy.”